Analysis of the Effectiveness of the Social Electricity Tariff in Serving the Target Public: Case Study in the State of Espírito Santo (Brazil) Considering the Current Situation and New Project Laws Scenarios

The Electric Energy Social Tariff (TSEE) is a social benefit created by the Federal Government of Brazil in 2002 to benefit energy consumers from the Low-Income Residential Subclass by granting discounts on the electricity bill. In an audit carried out by the Federal Court of Auditors (TCU - Tribunal de Contas da União - in Portuguese), it was found that the criterion for including families in the subsidy - monthly electricity consumption - is ineffective, since it has a low relationship with family income. Another audit carried out by the TCU discovered the lack of strategic design and key indicators for this social subsidy. Given this, this paper characterizes the per capita income profile and discounts granted to these families, focusing on the Brazilian State of Espírito Santo. The impacts of two law projects that are being discussed in the Brazilian Senate were also analyzed. The results indicate that families with higher per capita income predominantly receive more significant discounts on their electricity bills, confirming the audits' hypothesis. It was also found that the law projects improve the situation a little, but maintain this inconsistency and increase the financial value of the subsidy granted.